Definition
Conversion rate measures the % of visitors who complete an action. In ads it's often conversions / clicks; on-site it can be conversions / sessions.
Formula
CVR = conversions / clicks (or sessions)
Example
If you had 50 purchases from 2,000 clicks, click-based CVR = 50 / 2,000 = 2.5%.
How to use it
- Use click-based CVR when you're bidding on clicks (CPC).
- Use session-based CVR when you're optimizing landing pages and on-site funnels.
Common mistakes
- Mixing click-based and session-based CVR.
- Optimizing CVR by narrowing targeting and losing scale.
Why this matters
This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.
Practical checklist
- Write a 1-line definition for "CVR (Conversion Rate)" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Break-even CVR Calculator) to sanity-check assumptions.
- Read the related guide (e.g., CVR (Conversion Rate): definition, formula, and how to calculate) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Break-even CVR Calculator: Compute the CVR required to break even (and hit a target) given CPM, CTR, AOV, and contribution margin.
- Paid Ads Funnel Calculator: Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).
- Incrementality Lift Calculator: Estimate incremental conversions, incremental ROAS, and incremental profit from a holdout test.
- Max CPC Calculator: Compute break-even and target CPC (and optional CPM) from CVR, AOV, and contribution margin assumptions.
- Break-even CPM Calculator: Compute break-even and target CPM from CTR, CVR, AOV, and contribution margin assumptions.
Guides
- CVR (Conversion Rate): definition, formula, and how to calculate: CVR explained: what conversion rate means, how to calculate it correctly, and how to improve it without sacrificing scale.
- Break-even CVR: required conversion rate at a given CPM and CTR: A practical guide to break-even CVR: set landing page CVR targets from CPM, CTR, AOV, and margin, then prioritize post-click fixes.
- Paid ads funnel: CPM, CTR, CVR -> CPC, CPA, ROAS (with profit): A practical guide to the paid ads funnel: how CPM, CTR, and CVR drive CPC, CPA, ROAS, and profit - with formulas and common pitfalls.
- CTR (Click-Through Rate): definition, formula, and how to improve: CTR explained: what click-through rate is, how to calculate it, and how to improve CTR without sacrificing conversion quality.
- CPC (Cost Per Click): definition, formula, and how to calculate: CPC explained: what cost per click means, how to calculate it, and how CPC connects to CTR, CVR, and CPA.